Keeping interest rates high doesn’t even (usually) do that. The opposite, in fact. What The Fed is signaling to markets is that they expect Trump’s trade policies to be inflationary. Because they will.
This is one of the things Trump doesn’t understand.
Man I thought he intentionally did the low rates in his last go round not caring about interest rates but its scarier that he does not even get it.
Trump will force them to lower rates by firing half the government. Those employment numbers will be crazy (if the DOL has enough people left to compile them).
True though it’s much easier to keep a list of things he does. The things he understands can fit on 1/128th of a postage stamp with room to spare
One of the biggest victories coming out of Covid was the Fed’s ability to keep inflation under check better than most other wealthy nations. Powell, by many measures, is one of the few good decisions Trump ever made.
I was worried after the rate drop last month that the fed was too comfortable, so today’s news is GOOD for inflation.
could have been better if we had not gone into covid with zero interest rates.
We didn’t go into it with a zero percent rate. The rate was implemented as it began and everything shut down. An understandable move at the time with the information they had available to them.
Ultimately, rates were going to need an upward correction with or without COVID.
Yeah this is one of those things which drives me a little nuts as I swear I have seen the data differently. Still I see rates coming down in april of 2019 and had been static since the start of that year. I remember trump bemoaning how the fed was ruining his economy by having rates so high (over 2%) and it seemed to effect the fed as the stock market was on a tear still and they dropped them to 1.5% by nov 2019 and the government certainly was not responding to covid at that point. They should have really gone the other way and been at 3%. Then with dropping to zero and the stimulus at covid it caused the market to rebound rediculously at the time. I think the stimulus should have been done with rates being reduce at a slower pace. 1% then .5 then .25 and maybe not even hit zero if all went well. If this had been done I don’t think we would have seen the massive inflation coming out of trumps first term. https://www.macrotrends.net/2015/fed-funds-rate-historical-chart
I didn’t realize rates were THAT low right before 2020 so thanks for reminding me. I remember him, at some point, wanting to have negative rates.
The US Manufacturing sector was in a full blown recession in the last two quarters of 2019, with the rest of the economy expected to follow suit in 2020. Hence the Fed’s attempts to stimulate the economy through rate reductions. That was well before covid was even on the radar.
King Baby got a pass on his tariff induced recession due to the emergence of a global pandemic.
“failed to stop the problem they created with Inflation.”
Yes… that pesky problem they created… they created?
Dear god how do you look at him seriously?
The Fed did contribute greatly to inflation with more than a decade of loose money for capital.
But like other people said… They raised rates to try to stop it. It’s most likely not going to help inflation to lower rates.
In general it’s an intentional boom/bust cycle that profits capital while impoverishing normal people via inflation.
lol powells smirk
he knows trump can’t do shit to the fed
